A LOAN OF £260,000.

Otaki Mail, 21 June 1922, Page 4

A LOAN OF £260,000.

HOROWHENUA POWER BOARD'S GREAT ENTERPRISE. POLL. TO BE TAKEN IMMEDIATELY ENGINEER’S ESTIMATE OF BOARD'S REQUIREMENTS. At its meeting at Levin 1 yesterday, the Horowkcmiu Electric Power Board made important decisions in regard to ttie carrying out of its functions. Details ol tlie business transacted are as follows: Ttie Engineer, Mr T. R. Overton, M.1.E.E., submitted li.it- first report, which was as follows: A LARGE UNDERTAKING. “In company with tile chairman , anu members of the Board, l have examined the more; important routes { ol transmission and distribution lines j in the county and boroughs compels- j mg tue Board's disirtet, and gener- 1 ally speaking, i am oi opinion tnai the area is well situated lor the distribution oi electrical energy on account oi being, as it is, richly endowed with town and country popula- j lion- “ The load on the electrical system will .be built up between centres, chiefly from dairy and flaxmilling industries, whilst various industrial concerns and dwellings requiring power and lighting installations will j be connected in the towns. j “In order to bring the ever-increas-mg demand for electric power and light within the reach of these mills, J farms, factories and dwellings, very heavy responsibilities in matters oi finance, organisation of staff and engineering is entrusted with tlie Board, but I have no doubt dial each member will recognise, to the full measure, these responsibilities, and for my part, I realise from experience that the ultimate success of such a large undertaking will rest on the amount of economy and efficiency exercised therein, from commencement to completion. THE LOAN' PROPOSAL. "As instructed by liie Board at ii» last meeting 1 have made an estimate ol tlie amount of loan money requited, the- same being set forth in the accompanying schedule. ■'From these figures you will observe mat Hie total sum is approximately £26o,l)0ll, which could be upUlTeu, say, at the rate of not more than £7S,(UK) per annum, for a period of three years. “Whilst i am confident ul having made adequate provision covering tlie cost of tire job and probable extensions thereto, it is diliicuh to say how much should bet uplifted during lite third ' year of operation, as requirements will depend upon the amount absorbed of the allocations lotservice lines, and loans to assist, consumers m the; cost of their installations, which is rather a doubtful quantity. “After careful consideration I would recommend that authority be sought from the ratepayers to raise a loan of £'.160,000, and in asking lor this consent at the poll, ii can be made clear that only actual requirements will be uplifted to complete the scheme. SCHEDULE OF ESTIMATED LOAN , REQUIRED. £ Extra high, high and low tenteuston lines 110,000 1 lansiormei's and suh-statiuii equipment 15,UUU .■street light, fillings, etc 5,t»6U Instruments aim luuis i.UuU Transport and pole-carting equip m/m t, 6,000 Alteration to. existing telegraph lines 6,100 Lund, buildings and employees’ residences “,ouu j Allocation for consumers' service lines 7 lu.ooo j Allocation lor financial assistance to consumers ... “0,000 Preliminary expenses and office equipment L7SU Contingencies lo.uou £“17,000 interest at 6 per cent ami sinking iund ol 1 per cent during iirsi year of each portion oi loan £16,000, interest and sinking iund on same £IO6O 16,0a0. Interest on, say, £160,000 during second year £10,500, interest and sinking fund oil same £735 11,23 j Cost ul raising loan outside N.Z. at 5 per cent 12,106 £256,410 GENERAL. "Questions uf policy, stall organisation and details oi engineering will he dealt with at a later date. “Before concluding, I would like to express my thanks for the very able assistance rendered by the chairman and members of the Board, the County Engineer, Mr Anderson, and Mr Goldsmith, while going through the district in order to obtain the information necessary for this report. The Engineer added the following note:— “Tin's estimate of £1160,000 lias been liberally made up, as ii is prudent to obtain ample authority from the ratepayers in order to avoid repeating loan polls, which has been the expensive experience of many- Electric Power Boards in New Zealand." The. report was considered in committee, and alter a brief discussion the following motion was passed on the motion of the chairman, seconded by Mr Matheson: “That the Engineer's report be adopted, and that the necessary steps be taken to take a poll of ttie ratepayers for authority to raise £260,000 by way of loan.” it was decided, on the motion of Messrs. .Seifert and Matheson, “That the term of the loan be not more than 33 year, nor less than 20 years, with a sinking-fund of one per cent," BOARD AGAINST A JOINT LOAN. The Manawatu-Oroua Board wrote stating that, from the reported remarks at the last meeting of the Horowhenua Board, the letter of the forni-

ed Board had been misinterpreted, as it made no suggestion that.it should, control aud arrange the proposed joint loan, but it was anxious to. know definitely whether the various Boards stilt desired to unite iu raising tlie consolidated loan. A further fetter stated the Mana-watu-Uroua Board was now prepared to raise its ioan. If the Horowhenua j Board still intended to combine in a joint Joan, it should forward its estimate within fourteen days, otherwise tiie Alanuwatu Board would be reluctantly compelled lo raise its loan independently. The letters were considered in committee, and on liie motion of Messrs. SeiJ’gri and Whibley, the following motion was passed: “That this Board is not in favour, on the information now available, oi a joint loan, but will agree to attend a further conference if. one is called.” CHAIRMAN'S REMUNERATION. J l,, lJ aii.ueliL ... m ...c jovpoacu reuiuwiaavi,' o* £Cuvr lOi me c&Uiiiuui. it Vvcto aiUlcu Uivs uoUcu pi.ciCti.GU Wtu? i.sj tUiUW JJ&JO 111 CU.SG3 WliCf'C i,ic uffUCT ia.lvi.fij3 Ul 'lllG GUaiU 15 VCfA Jaibu ana me dunes oi me cluuruiuu more onerous than usual, Ji the tatter sum was fixed tlie Minister woutd approve of it. Tlie chairman, said tiie Board cuuiu oiny agree to tile Minister's view. 11 mai was tiie Department’s opinion he mu not think they siiouid push the matter. It would make no difference to las eliorts, and ii lie found me ~/tymein was insuhicient lie wuulu a, once miorm tiie Board. Mr Seifert said he would like to see the chairman get tlie larger amount, out R that was the Department's view they had no option but to agree at pl'OStD l. Mr Matbeson said it was considered the chairman would have a great deal of travelling in the early stages ul tiie work. Mr Brown suggested that tlie chairman's residence should he connected with the telephone, which was over two miles distant at present. It would be of very great assistance to the Clerk and Board. The Board agreed to the Department's proposal in tlie meantime. PUTTING THE LOAN BEFOBE THE DISTRICT. .Mr Whibley = asked when tlie poll would be taken, and as' to tlie explanation oi it lo tlie public. The chairman said tlie poll would be ready for decision in about six weeks, lie would address meetings in ! all tbe centres, of whicli there were abuqt thirteen. He knew he would have tlie assistance of tlie members when lie came to "their districts. The Boat'd thought it was very necessary that the Engineer should accompany the chairman on his tour, so that any technical questions asked could lie fully answered. GENERAL. liie action of a sub-committee m completing an arrangement lor tire use of tlie new ohices adjoining tlie County Chambers at a rental ul 25, per week was continued. Mr Matheson , referred to the remarks made by Mr Brown in regard to toe telephone to the chairman = i evidence, lie moved that the matter be referred to tiie finance Com mittee. It would be ol great assistance to tlie Board to have the chairman within reach. Mr Gunning seconded tlie motion, and said it was a most reasonable proposal. The matter was referred to the finance Committee. The i hairman (Mr G. A. Monk) piesidea tbe meeting, ana ilieie were also present Messrs. ’ Brown (Waikauae), Matheson (Levin), Whibley (Foxtoil;, Gunning (Shannon), Sei- ■ jet-i (llorowhenua), Kilsby (Otaki), Mackay (Paraparaumu) and Barber (Horowhenua).